Mission Oaks National Bank Becomes Subsidiary of Mission Oaks Bancorp


TEMECULA, Calif., Sept. 1, 2005 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) has announced the creation of Mission Oaks Bancorp, a bank holding company that will give the Temecula-based community bank additional financial flexibility.

Effective September 1, Mission Oaks National Bank will become a wholly owned subsidiary of Mission Oaks Bancorp as part of a merger that was approved by shareholders and regulators.

"The bank holding company structure makes it easier for Mission Oaks to raise additional capital, repurchase its own stock, borrow money, acquire other banks and non-bank entities and issue stock," said Gary Votapka, Mission Oaks Bancorp president and chief executive.

Concurrent with the formation of the holding company, shares of the bank's stock will split 2-for-1.

Following the split, Mission Oaks shareholders will receive two shares of the new bank holding company for each Mission Oaks National Bank share they currently own. For example, a shareholder with 1,000 Mission Oaks National Bank shares prior to the split would receive 2,000 shares in the new bank holding company.

For shareholders whose stock is held in brokerage accounts, the conversion will be done through the brokerage account. Shareholders who hold certificates of Mission Oaks stock, will receive a letter of transmittal instructing them how to exchange their shares of Mission Oaks National Bank for Mission Oaks Bancorp shares.

Mission Oaks Bancorp stock will trade under the ticker symbol MOKB (OTCBB:MOKB).

Mission Oaks National Bank is an award-winning, community-based, federally chartered bank with assets of more than $145 million that is committed to serving consumers and businesses in Southern California. The bank offers personalized services and products through two full-service branch offices and loan production offices in San Diego County and Phoenix. Mission Oaks will open a third branch in Ontario this month.

For more on Mission Oaks National Bank visit its Web site at missionoaksbank.com.

Safe Harbor

Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Bank's performance, regulatory matters and those discussed in filings by the Bank with the Office of the Comptroller of the Currency.



            

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